Where to show Casual Income in ITR-1 - Any Circular for this?

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This discussion addresses how a retired pensioner should declare occasional consultancy income using the ITR-1 form. While the income is not regular, advice suggests it can be declared under 'Income From Other Sources'. However, if Tax Deducted at Source (TDS) under sections like 194C or 194J has been applied, filing ITR-4 might be necessary instead of ITR-1.

Navin Talati

Navin Talati (Querist)

13 July 2024 Sir,

I need your guidance in the following matter.

I am a retired pensioner. The ITR-1 is applicable to me.

Being a technical person, I may get some consultancy and hence earning opportunities casually (Not on regular basis). If I get such an opportunity and earn some amount (which is a casual income and not a regular income) , In this regard, please guide me that as and when I get some income from this activity, where should I show this income in ITR-1 and in which column? Is there any appropriate CIRCULAR for this?

Awaiting your valuable advice & guidance.

Regards.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2024 Any such casual income can be declared under head 'Income From Other Sources'

Navin Talati

Navin Talati (Querist)

13 July 2024 Sir,
Many many thanks for very quick reply.
Sir, my confusion is still there that Income occurred due to casual (i.e. not in regular basis) Technical Consultancy seems not included as "Other" income in ITR-1.

For your ready reference, I am giving you the following detail:
------------------------QUOTE--------------------------------
What is Casual Income in Income Tax?
In income tax parlance, casual income is an extra financial boost that cannot be relied upon as a steady stream of revenue. It represents a one-time occurrence and does not fall under any contractual agreements or future expectations. Casual income is unpredictable, defying any established patterns or distributions. Furthermore, it encompasses any unforeseen and unscheduled inflows of money.
While understanding the meaning of casual income, it is important for you to understand some of its key provisions. These are:
• Any expense related to a casual income is not deductible. If you incur any cost to earn casual money, it will not get deducted from any earnings. For instance, the cost of buying a lottery ticket will not be deducted from the income received against it.
• As per Section 194B, winnings from things like lotteries, card games or crossword puzzles are subject to TDS (tax deducted at source) if they exceed Rs.10,000. The effective TDS rate is 31.2%, including cess and surcharge. The organisation distributing the prize money is responsible for deducting TDS.
• You are not permitted to set off any losses. If you have any casual loss instead of income, the amount will not be subtracted from any of your income.
Example of Casual Income
Examples related to casual income encompass the thrilling realm of winnings, such as lottery jackpots, quiz shows, poker games, successful sports betting, crossword or other puzzle-solving, and various other stimulating games of chance. Lotteries offer an opportunity for individuals to strike it rich by claiming prizes through draws or sheer luck.
--------------------UNQUOTE-------------------------------------------------------
This detail is confusing me as the captioned type income is not mentioned. I also refer ITR-1 and concerned column of "Other" income, but this type of income is not mentioned there.

Further guidance requested.....please.
Thanks in anticipation.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

13 July 2024 Here meaning of casual is to be considered as occasional or not regular. It can be declared as summery without any details in Other Income. (income From Other Sources).
Only point is if any TDS been deducted over the income like Sec. 194C/ 194J etc, in that case you will be required to file ITR 4. Otherwise ITR 1 will be OK.

Navin Talati

Navin Talati (Querist)

22 July 2024 Thank you Sir.
....for your valuable guidance.
regards.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

22 July 2024 You are welcome,

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